Deputy Head of the Office of the President Rostyslav Shurma noted that the refusal of cash and the transition to Cashless are impossible without tax reform and capital amnesty. Shurma reported this at a press conference, Ukrainian News Agency reports.
He noted that there was a lot of manipulation and speculation around the topic of refusal of cash in Ukraine, but the fact that it caused a resonance says that this issue is relevant and sensitive.
"What was said in London? It was said that we are analyzing such an experience and scenario of transferring the economy and the entire system to Cashless. We are really now analyzing and looking at whether and how this can be implemented," Shurma said.
He noted that the reaction at the London conference of business, representatives of international organizations and politicians was extremely positive to the idea of completely abandoning cash in Ukraine.
Shurma believes that certain fears that have arisen in Ukrainian society around this topic are primarily related to corruption and the shadow economy. He is sure that cash is needed for bribes. Shurma noted that 60-70% of people working in the non-state sector do not pay taxes in full.
"The transition to Cashless does not give a 100% guarantee of no corruption, but it always leaves traces and this makes the fight against corruption much easier," he said.
Shurma stressed that the refusal of cash is now only a topic, this is not even a solution. He stressed that the introduction of Cashless is possible only in conjunction with tax reform and with a large-scale amnesty of capital.
“Introducing Cashless - it's not in question to do it somehow dramatically at one point. This is a rather systematic integrated approach, step-by-step, which will apply to 10 reforms in other areas. Cashless without comprehensive tax reform, including perhaps in the version that we began to discuss with a significant reduction in tax rates, is not possible. Because if you transfer everything to Cashless, then either the incomes of citizens will fall significantly, given the tax burden, or the economy can become uncompetitive," Shurma said.
Also, in his words, it is impossible to introduce 100% Cashless without a complete and total amnesty of capital.
"If we transfer, then all people who have savings, no matter how they received them, it is necessary to give the opportunity to legalize them," said the deputy head of the Office.
Regarding the preparation of infrastructure for the possibility of switching to Cashless, Shurma said that a project is already being prepared with Ukrposhta to cover the entire population of Ukraine with digital banking services.
"Today we are preparing a project with Ukrposhta, the main purpose of which will be 100% coverage of the entire population of Ukraine with digital banking services. And 100% coverage of all possible points of sale by modern terminals. That is, there should be full availability of this infrastructure for every citizen of Ukraine in any conditions," Shurma said.
He also noted that it is necessary to provide training for people to work with digital money. It is also necessary to ensure that citizens trust digital money no less than paper money.
Regarding the timing of the transition to Cashless, Shurma noted that Sweden showed one of the most successful examples of partial refusal of cash, this path took it about 10 years. At the same time, he added that the world began to develop much faster, digital products began to develop quickly, the war in Ukraine accelerated many processes, and also led to the example of a digital breakthrough of Ukraine with the Diia application.
"We can go this way not in 10 years, but at times or 10 times faster," he said.
When asked about the cash withdrawal tax, Shurma said that when a detailed step-by-step plan in this direction is ready, then it will be discussed with the society, so far there is no decision on the cash tax.
As Ukrainian News Agency earlier reported, on June 21, Shurma announced at the London conference Ukraine Recovery Conference the idea of completely abandoning cash in Ukraine in order to combat corruption.
First Deputy Chairman of the National Bank Kateryna Rozhkova said that no country in the world has completely refused cash. Nevertheless, according to her, the banking system is ready for this.
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